These 3 Factors Are Driving Bonds
Gary Tanashian | Dec 04, 2017 10:03AM ET
Long-term bond yields are rising with the 2-year rising more than the 30-year Treasury bill. So not only is this a boost for rising nominal yields, it is also a boost for the flattening yield curve. The 3rd factor? It's stocks vs. gold.
Here are US yields and a couple of associated bonds.
Factor #1: Here’s the weekly view of the 10-year yield. We are looking for 2.9%.
Factor #2: Here is the big-picture yield curve. We are looking for the trend line, flat or inversion.
Factor #3: And finally, stocks vs. gold. We are seeking the lateral resistance area and a 38% Fib retrace.
h3 Bottom Line/h3
The confluence of the above can be looked at as bullish for as long as they seek their destinations.
The confluence of the above will be viewed as bearish – very bearish – when target acquisitions are at hand.
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